Authors: Moustier, P. (et al.)
Produced by: International Finance Corporation (IFC) (2005)
The study assesses conditions for an increased involvement of the poor in the food value chains driven by supermarkets and other value-adding outlets. The trends of the different distribution chains were analysed through the gathering of secondary data. Surveys on poor consumers' access to different retailing points were made in Hanoi, Ho Chi Minh City and Moc Chau, as well as comparison of prices between the different points of sale in these cities. Four case studies investigated poor farmers' and traders' participation in distribution value chains. The study finds:
- supermarkets are developing fast in Hanoi and Ho Chi Minh City
- policies have favoured the centralisation of food distribution, in the form of planned wholesale and retail markets, support to private investment in supermarkets, and planning of eviction of street vending and informal markets
- a limited involvement of the poor as consumers in supermarket chains
- a limited involvement of the poor as traders within supermarket chains
- a limited involvement of the poor as farmers within supermarket chains
- farmer cooperatives with training in quality management are vehicles for greater involvement in supermarket chains
- selling commodities to retailers with strategies of quality promotion generates additional incomes for farmers, especially those organised in associations
- supermarkets create stability in prices and quantities bought while quality requirements in terms of quality, diversity, delivery, as well as less favorable conditions of payment, and possible opportunistic behaviour are a disadvantage.
Policy recommendations include the promotion of:
- farmers' cooperatives and associations
- quality management training for farmers
- technical training and credit programmes
- codes of good practice for supermarkets
- retail diversity.
Source: Eldis Agriculture and Development Reporter, 5 October 2006
Full article at http://www.eldis.org/cf/rdr/rdr.cfm?doc=DOC22676 [1]